The Trust’s Manager, Walter Price has over 40 years of experience of investing in technology and is based in San Francisco at the heart of the tech world. Read his latest views in Investment Insights from Silicon Valley below.
Walter Price's bulletin provides insight on the immediate and longer-term outlook for the technology sector in the light of this week's market sell-off. The team continues to carefully balance risks and opportunities, leveraging their industry expertise and emphasising individual stock selection.
Many technology companies grow up on the energy and vision of a charismatic individual. This month, Walter Price considers the Chief Executive Officer role in the context of technology companies, stressing that a founder may or may not be the best individual to drive a business forward.
This month, Walter explains how technology companies are taking time and effort to understand – and adapt to – the needs of the millennial generation. What is it that makes this generation, so adept with social media and digital technologies, tick?
Walter Price shares his observations on the first earnings season since the US corporate tax cuts came into effect. Apple was notable for results that were better than expected. Walter also considers Tesla's CEO, Elon Musk, and how the technology industry has long been home to unique personalities.
Walter Price reflects on the topical theme of corporate governance and the responsibility of the largest tech companies. With growing calls for greater regulation, Walter considers how this might impact on the ‘Big Tech’ digital giants.
Walter Price considers the future for traditional retailers against the backdrop of e-commerce. He also considers the potential impact of the US Government’s recently passed tax bill as well as reviewing the progress of Apple and Samsung in the vast Chinese market.
Technology is disruptive. It can render old industries obsolete, and bring new industries into existence. Naturally this has frequent - and sometimes controversial - consequences for the labour market, but historically, where one industry has faded, another has often emerged to to take its place.
The shifting mobile market claimed another scalp last month as Ericsson reported a slump in profits. The Swedish telecoms equipment maker blamed rising competition and said it would continue to cut costs, but its problems are part of a wider phenomenon...
Apple’s EU tax bill Apple attracted headlines not solely for the launch of its new iPhone 7 this month, but also for an eye-popping €13bn tax bill from the European Commission. The EC ruled that the ‘sweetheart deal’ struck between the Irish Government and the US tech giant was illegal.
Investors the world over are worried about growth. Is China slowing? Is the US slowing? And if so, how severely? The technology sector may be better-placed over the long-term to deliver structural growth, but it is not immune from these concerns.
Technology was one of the clear winners in 2015, amid a generally lacklustre year for stock markets. The Nasdaq finished the year nearly 6% ahead of the wider S&P 500 index. However, the strength has been confined to a few key names, the so called ‘FANG’ companies.
Originally named for their rarity, technology ‘unicorns’ are now as common as pigeons on Wall Street. From Airbnb, Dropbox to Pinterest and Uber, there are an increasing number of companies hitting the $1bn valuation mark in the private market (the qualifying point for a ‘unicorn’).
The domestic Chinese market has been in meltdown since the Government announced short-selling restrictions. This is obviously a concern. We have around 5% of our portfolio in China, albeit in Hong Kong listed shares rather than the ‘A’ Shares market.
A June rise in interest rates now looks increasingly unlikely, with some commentators believing the Federal Reserve may defer into 2016. Nevertheless, bond markets are wobbling and the issue of interest rate rises continues to influence stock markets. The technology sector is not immune.
There is almost nothing that illustrates the pervasiveness of modern technology better than the development of the connected car. A few short years’ ago, cars were a technology-free zone, and yet now technology is promising to transform the driver’s experience and improve road safety.
There has been a notable sell-off among semi-conductor stocks this month, enough to drag the Nasdaq lower and raise fears of a wider slow-down in the technology sector. The catalyst for the share price falls was a profit warning from Microchip Technology, which cited weaker demand in China.
When the higher valued technology stocks sold off in March and April, the key to their revival or otherwise was always likely to be earnings. As it was, many of the bellwether technology groups either hit or beat consensus expectations in the April earnings season.
In last month’s newsletter, we mentioned the burgeoning trend of internet security. Major retailers have been stung by the coordination and sophistication of recent cyber-attacks and have been forced to address the holes in their security systems as a matter of priority.
Microsoft has long understood the necessity of shifting its business from its weakening core markets to newer and higher growth areas. To date, its execution has been erratic; there have been ill-judged forays into the mobile phone world, for example.